When you receive a paycheck, what are your next steps? Do you have set amounts that you allocate to certain bank accounts? Do you specify how much you’ll be allowed to spend across a set of expense categories? Maybe you even have analysis programs that help you track your recent financial activity and their relation to your goals? Since you’re reading a financial inclusion blog, I’m guessing you fit into one if not all three of these money management groupings. But of course this isn’t the case for everyone.

For many, receiving a paycheck isn’t followed by examining a financial analysis program’s dashboard, making adjustments to a financial plan for moving forward, and carefully dispensing funds. It’s followed by the elation that comes from knowing that you’ll be able to pay your rent this month. By the relief that you’ll be able to pay back the family and friends who lent you money. Maybe even by a slightly frivolous purchase to help wash away the sting of financial stress. Money management in one of its many forms likely comes, but it’s often that it comes much after the paycheck. And it’s reasonable to assume that this separation gets in the way of more holistic money management.

With the help of a $350,000 grant from the Center for Financial Services Innovation (CFSI), the Neighborhood Trust Financial Partners will soon launch PayGoal, an employee payment program that’s coupled with an array of financial services. The program provides on-site, individual financial counseling to companies’ employees, facilitates their participation in formal financial services, offers them financial capability tools, and assists in their establishing financial plans and goals – all while integrating the companies’ payment system. Workers will predetermine how much of their wages will be allocated across spending and savings buckets, and instead of a traditional paystub, employees receive their pay with a report on their financial progress over the pay period (money saved, debt reduced, financial milestones reached, etc.) as well as educational messaging, such as the difference between gross and net pay.

PayGoal is one of eight organizations who received support from CFSI’s Financial Capability Innovation Fund II. In addition to monetary assistance, CFSI’s support to these organizations includes strategic advice and guidance, technical assistance, and peer-learning opportunities. PayGoal is operating as part of the Neighborhood Trust’s Employer Solution venture.

Founding Sponsor

Credit Suisse is a founding sponsor of the Center for Financial Inclusion. The Credit Suisse Group Foundation looks to its philanthropic partners to foster research, innovation and constructive dialogue in order to spread best practices and develop new solutions for financial inclusion.

Note

The views and opinions expressed on this blog, except where otherwise noted, are those of the authors and guest bloggers and do not necessarily reflect the views of the Center for Financial Inclusion or its affiliates.